Weekly Update: Shipping Stocks Are Soaring
Good evening, and welcome to this week’s edition of Stealth Trades!
The stock market is back!
I have been talking the last couple months about how we were due a pullback.
After a relentless march higher, it was long overdue.
And as you know by now, short-term dips are actually healthy for stocks. They give the market a chance to “digest” the move and rid itself of weak-handed sellers.
In just a week, our market health model has gone from fully bearish to fully bullish.
This is an impressive show of strength and exactly what we want to see – strong buying in response to the dip.
Right now, the shipping sector is showing the greatest strength. This has been the leading group for the last two months.
We bought Golar LNG (GLNG) in our Alpha Stocks service a few days ago. This is a mid-cap marine shipping stock coming out of a consolidation base and breaking out higher.
DHT Holdings (DHT) is another marine transport stock that looks good here (see chart below):
It is scheduled to report earnings on Tuesday. But if I was a betting man, I would wager they beat expectations.
Scorpio Tankers (STNG) reported better-than-expected numbers on Thursday triggering a breakout from a similar pattern:
So did Teekay Tankers (TNK)…
Safe Bulkers (SB) and Overseas Shipholding Group (OSG) also look extremely strong here, and both are ripping to new all-time highs.
Beneath the surface, everything looks strong.
The percentage of stocks above their 20, 50, and 200-day moving averages have been steadily increasing for the last three weeks.
We have also seen 7 straight days of more stocks making new highs than new lows:
As of Friday morning, at the time of this writing, the S&P 500 index trades within 0.5% of its all-time highs.
Given the strong price action, robust market internals, and standout strength in the shipping sector, this is when I would be stepping on the gas.
BOAT is the ticker symbol for the global shipping ETF. And as you can see in the chart below, it is flying up the right side of the chart.
Those looking to gain some exposure in this area would be wise to scan through charts over the weekend to identify potential buy targets.
Click here to access my TradingView watchlist of shipping stocks.
If you have a TradingView account, click ‘Save as watchlist’ to add it. If you don’t have TradingView, it will still give you the 28 names and tickers.
We can dive into these Monday afternoon in our live Stealth Trades session at 4pm ET. If you are getting this email, you have access.
Here is the link just in case.
See you then.
Best wishes for your trading,
